In Queensland property transactions, it is not uncommon for one party to request changes after both parties have signed the contract (such as an REIQ residential contract). However, any significant amendments made after signing should never be handled informally or with handwritten notes, as this can lead to serious legal and stamp duty consequences.
Common Post-Signing Amendments That Require Attention
1. Price Adjustments After Building & Pest Reports
A typical scenario involves the buyer discovering significant issues in the Building and Pest Report. The seller may agree to reduce the sale price—for example, from $800,000 to $780,000—to cover anticipated repair costs.
This change directly affects a core term of the contract and alters the amount of stamp duty payable. Handwritten amendments or informal changes are not acceptable and may result in penalties.
2. Adding a Spouse as a Co-Buyer
Another common request is for the buyer to add their spouse as a joint purchaser after the contract has been signed. This change affects the identity of the buyer and could impact stamp duty concessions—such as first home buyer exemptions.
If not handled properly, the Office of State Revenue may treat this as a new transaction or contract, potentially triggering double stamp duty liability.
Recommended Approach: Use a Deed of Variation or Deed of Rescission
To ensure legal clarity and avoid unintended tax consequences, we strongly advise clients to use formal legal documents when making significant amendments.
✔ Deed of Variation
This document is drafted by a solicitor and clearly outlines the original contract terms, the proposed amendments, and confirmation by both parties. It serves as legal proof of the agreed changes and ensures compliance with revenue requirements.
✔ Deed of Rescission + New Contract
If the changes are too substantial—such as changing the buyer’s identity and price simultaneously—it may be legally appropriate to terminate the original contract and sign a new one. In this case, the parties should execute a Deed of Rescission followed by a fresh contract.
These formal legal mechanisms protect both parties and provide a valid audit trail for regulatory bodies.
Risks of Informal or Improper Amendments
Amending a contract without formal documentation may lead to the following risks:
- Reassessment by the Office of State Revenue, triggering duplicate stamp duty
- Loss of eligibility for concessions (e.g. first home buyer benefits)
- Future disputes if one party denies the amendment
- Loan delays if the bank does not accept the changes
- Delays in settlement or potential contract termination
Conclusion: Protect Your Transaction – Amend Properly
Signing the contract is just the beginning. If important changes are needed afterward, they must be made through proper legal channels. Never rely on handwritten notes or verbal agreements—they offer no legal protection and may expose both parties to unnecessary tax liabilities or transaction delays.
How Can Ensure Legal Help?
Ensure Legal, a Brisbane-based property law firm, provides expert legal support for:
- Drafting Deeds of Variation or Deeds of Rescission
- Liaising with the Office of State Revenue regarding amendments
- Protecting your legal rights and managing contract risks
- Coordinating with banks and agents to ensure timely settlement
If you are considering changes to a signed property contract, speak to our team today for practical legal advice.
